Q2 2023 Navios Maritime Holdings Inc Earnings Call

Good morning, and thank you for joining Navios Maritime Holdings second quarter.

Q3 earnings Conference call. We are pleased to host this cool makena knowledge.

With us today from the company are chairwoman and see.

Angela you Frankie Chief Financial Officer, Mr Dual track.

She need how much president of strategic planning.

Carriage and Navios logistics, Chief Financial Officer, Mr. Enrique surrender.

And the correlated with stores.

He will take you through the conference call details Safe Harbor statements Doris.

[music]. Thank you Michael as a reminder, this conference call is being webcast to access the webcast. Please visit the Investor section of Navios Holdings website.

Www dot not his dot com, you'll see the webcast link in the middle of the page and a copy of the presentation referenced in todays earnings conference call will also be found there.

Now I will review the Safe Harbor statement.

This conference call could contain forward looking statements under the meaning of the private Securities Litigation Reform Act of 1995 about Navios Holdings forward looking statements are statements that are not historical facts such forward looking statements are based upon the current beliefs and expectations of Navios holding.

Management and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward looking statements.

Such risks are more fully discussed in Navios holdings filings with the Securities and Exchange Commission.

The information set forth herein should be understood in light of such risks Navios holdings does not assume any obligation to update information contained in this conference call.

We'll begin to explore next conference call that Navios holdings, chairwoman and CEO Ms Angeliki <unk> Angeliki.

Thank you Michael and good morning, total human joining us on today's call.

I am pleased with eyes out for the second quarter of 2020 City you in a week, we reported revenue of $82 million and net income.

15, one 5 million done now.

Navios holdings owns to US it has been 3% ownership interest in Navios partners and diversified Marine Transportation company and 63, 8% ownership interest in Navios South America logistics.

G suite and the interest that actually provide the India. He does he a region of South America we'd.

We believe that the global conditions support continued growth in the Haynesville rearrangement.

There was a requirements evolve, whereas it might be in fill drilling technology, all wonder requirement for me now to commodities.

Dynamically changing grain trade button I agent would it be providing solutions.

We intend to play our part by maximizing the return from our existing assets through innovative logistics solutions that leverage our unique interested actually accurate.

I would like now to turn the call over to Mr. Jaws, Nowadays, who will go through the financials George.

Thank you Angeliki, please turn to slide five for a review of the Navios Holdings financial highlights for the second quarter and first six months of 2023.

Focusing on EBITDA and net income from continuing operations in order to exclude the sale of the dry bulk fleet in Q3 of 2022 EBITDA for the quarter was $42 3 million compared to $41 6 million in 2022.

The 2000 Twenty's results include $1 1 million being Navios holdings shares share of the impairment loss from the sale of a vessel in Navios South America logistics.

Net income for the quarter was 15, and a half million compared to 16 million in 'twenty planning tool.

Moving to the first half financial highlights EBITDA for the first half of 2023.

It was $82 8 million compared to $74 9 million in the first half of 'twenty two.

The improvement is mostly due to an increase in the equity pickup from Navios partners.

The improved results of Navios South America logistics.

Net income for the PD one.

Period was about 30 million compared to 590000 in the first half of 'twenty two.

Net income for 2022 and includes a 24 million upfront fee paid in the form of convertible debenture for the financing of the ship mortgage notes in Q1 of 2022.

Moving to slide six in our balance sheet highlights following the sale of the fleet. The consolidated balance sheet, mainly represents the balance sheet of <unk> logistics and our investment in Navios partners.

The cash balance was about $69 million compared to about $79 million at the end of December 'twenty two.

Aldo This six to 9 million 23 was at Navios holdings in 46 of them have yourself on mute.

Yes.

Please turn to slide seven for an overview of Navios South American logistics.

Logistics is a leading infrastructure and logistics company that Heathrow, If you add Asia. The company operates three port terminals, which for the first half of the year provided about 71% about EBITDA.

These are complemented by our barge fleet Fortinet transportation and product tanker fleet for question couple of estimates.

We have unique infrastructure assets in the region, which we leverage to serve our existing clients and develop new business opportunities.

At this point I'll turn the call over to <unk> for an update of Navios, South American logistics cities and developments.

Thank you George.

Please turn to slide eight where we discuss the recent developments.

Increased mineral exports from the Columba area in Brazil, as well as increased exports of if I could calculate contacts from Paraguay, Bolivia, and the state of Mato Grosso and busy through the Heathrow via the Vex system.

Creating a positive environment for iron ore import data in our box business.

In the second quarter of 2023, and equal to one 2 million tons of minerals, we're passing through our import data.

Compared to just 266000 in the same period last year.

Increased exports of iron ore Aquilar strong soybean and corn crops in Paraguay drives the demand for transportation.

Since the beginning of the here, we can fix six dry box convoys on period charters, which should generate about 27 million in revenue all our remaining dry box convoys and actual fixed under volume contracts for this year.

In the Microsoft logistics for agricultural products trading partners, I mean, Miami and our companies adopting it terribly CS to offer our clients innovative logistics solutions and capture new business Argentinian crushing plants are importing soybeans from IC to cover the shortfall in the supply of raw material.

Due to the failed domestic soybean crop.

Greenport data Monoline auto why he's a cost competitive solution for the storage and shipment of Brazilian beans, they seem to Argentina.

We expect the new trade to continue through the year and mitigate partially the impact of a week or two I am soybean production this year.

Market conditions in Cabo does continue to be healthy and our vessels have performing way what are the remaining six months of the year, we have fixed 90% of our available days expecting to earn a time charter equivalent of $27143 per day per vessel.

I would now like to turn the call over to Andy to Fed Rondel Navios logistics here for the discussion of the financial results.

Thank you Yanni, please turn to page nine.

So she sticks to the strong performance during Q2, 2023 mainly driven by the brokerage has won the lottery segment.

EBITDA and profit in this slide have been adjusted to exclude $1 7 million of impairment losses incurred as a result of the sale of all our Banca name Bethel Human H, which was completed in August 2023.

Adjusted EBITDA was 32 5 million, 3% higher as compared to the same quarter last year.

In the glass segment, Q2, 2023, EBITDA increased by $4 2 million to $9 5 million.

Significantly increase demand for I don't know what I'm granting transportation, that's allowed us to fix various box convoy something bigger contracts at attractive rates.

Segment, EBITDA was 21 1 million, 13% lower as compared to $24 4 million during the same quarter last year.

Positive impact of higher thought he suddenly I don't know that port and increase Idaho throughput from the clients all reminding them basically yeah, what's negatively offset by a lower grain throughput mainly related to a reduction I mean, the order why in exports.

They've got with US business Q2, 2023, adjusted EBITDA remained almost stable at one 9 million.

For Q2 'twenty three the adjusted profit was $6 1 million, 4% lower as compared to the same period last year.

Turning to the financial results for the six months video then the insurance 30, so anytime you're three revenue increased 15% to $146 6 million adjusted EBITDA increased by 6% to $59 1 million unadjusted profit increased by 1.7 million to 7.7 million compared to the same.

He did last year.

Please turn to slide 10.

Navios logistics has no significant debt maturities until 2025.

Gotcha Gotcha.

At the end of Q2 of 2023 were $45 9 million.

This concludes my presentation I would now like to turn the call over to Cindy for her final comments actually begin.

Thank you and thank you. This concludes our second quarter 2023 earnings conference call. Thank you.

Okay.

Thank you. This does conclude today's program. Thank you for your participation you may disconnect at any time.

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